TEST BANKS| For Microeconomics Exam_1_ Study Questions and Answers (ALL CORRECT AND EXAMINABLE 2022).pdf

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1. Scarcity is due to unlimited wants and limited resources 2. If a grocery store sells a bag of potatoes for $2.30, what do economists call the money received in payment? Marginal revenue for the s... tore 3. The government makes all economic decisions in a: centrally planned economy 4. Which of the following is when production reflects consumer preferences? Allocative efficiency 5. Opportunity cost is: the highest valued alternative that must be given up to engage in an activity. 6. What generates allocative efficiency in a market economy? Voluntary exchange between buyers and sellers 7. The relationship between caloric intake and pounds lost is: inverse 8. If the price of gasoline was $1.25 a gallon and it is now $2.25 a gallon, what was the percentage change in price? 80% 9. Human capital is: the accumulated skills and training workers have. 10. An example of a factor of production would be: a worker hired by an auto manufacturer. 11. The attainable production points on a production possibility curve are: the points along and inside the production possibility frontier. 12. The term that means the highest valued alternative given up when a person chooses to engage in an activity is: opportunity cost 13. If your tuition for this term is $5,000, room and board this term is $3,000, books this term are $500, and you can only work part-time while in school and earn $4,000 rather than $10,000 during the term, then your opportunity costs of college this term is: 11,500 14. If a firm can produce a combination of 60 units of X together with 80 units of Y if it produces 70 units of X, the firm can only produce 60 units of Y, thus the opportunity cost to produce 10 more units of X is: 20 units of Y [Show More]

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